Professional Documents
Culture Documents
HOME OFFICE
Branch 10,000.00
Shipment to 10,000.00
Cash/AR 10,000.00
Sales 10,000.00
COS 10,000.00
Inventory 10,000.00
Branch 12,000.00
Shipment to 10,000.00
Allowance 2,000.00
GP rate MU rate
Sales 100% 125%
COS 75% 100%
GP 25% 25%
PROBLEM 1
a Samples - Agency 13,000.00
Shipment to Agency
Cash 91,000.00
Accounts Receivable
Expenses 10,500.00
Cash
Expenses 6,850.00
Cash
b Sales
COS
GP
Expenses - WF
Expenses paid by HO
Impairment Loss
Depreciation Expenses
Net Income
PROBLEM 2
Sales
COS
GP
Expenses - WF
Expenses paid by HO
Impairment Loss
Depreciation Expenses
Net Income
PROBLEM 3
a Home Office (13,600.00)
Branch 28,400.00
b Account
Branch HO
Unadjusted Balance 28,400.00 (13,600.00)
Shipment - (5,000.00)
Expense allocation - (900.00)
Note collected 100.00 -
Cash remittance (6,000.00) -
Merchandise returned (3,000.00) -
Adjusted Balance 19,500.00 (19,500.00)
PROBLEM 4
Home Office Branch
Debit Credit Debit
Cash 116,000.00 31,250.00
AR 104,250.00 63,000.00
Inventory 242,500.00 117,500.00
Branch 196,500.00 -
FF 100,000.00 40,000.00
AD 27,900.00
AP 112,750.00
Home Office -
Share Capital 250,000.00
RE 302,100.00
Sales 525,000.00
Shipment to 251,000.00
Purchases - -
Shipment from - 251,000.00
Operating Expense 133,000.00 80,000.00
Depreciation Expense 5,900.00 3,250.00
TOTAL 898,150.00 1,468,750.00 586,000.00
Income Summary 570,600.00
TOTAL 1,468,750.00 1,468,750.00 586,000.00
ADJUSTMENTS:
Inventory, end 242,500.00
Income Summary 570,600.00
Inventory, beg 200,600.00
Purchases 612,500.00
Shipment to 251,000.00
Shipment from 251,000.00
Allowance -
Inventory -
Sales -
COS -
Accounts Payable -
Accounts Receivable -
PROBLEM 5
b At Mark Up At Cost
Beginning Inventory outsider 7,500.00 7,500.00
ho 24,500.00 18,375.00
Purchases 20,000.00 20,000.00
Shipment from HO 40,000.00 30,000.00
GAFS 92,000.00 75,875.00
Ending Inventory outsider 5,500.00 5,500.00
ho 26,000.00 19,500.00
COS 60,500.00 50,875.00
c Sales 78,500.00
COS - at cost 50,875.00
GP 27,625.00
Expenses 12,500.00
True Income 15,125.00
Sales 78,500.00
COS - at MU 60,500.00
GP 18,000.00
Expenses 12,500.00
Net Income reported 5,500.00
Realized MU 9,625.00
True Income 15,125.00
ning Inventory
ment from HO
g Inventory
BRANCH
Shipment from 10,000.00
HO 10,000.00
Purchases 10,000.00
Cash/AP 10,000.00
s based on cost
13,000.00
10,000.00
120,000.00
91,000.00
10,500.00
6,850.00
93,000.00
5,000.00
120,000.00
93,000.00
27,000.00
6,850.00
10,500.00
5,000.00
-
4,650.00
64,380.00
51,504.00
12,876.00
3,815.00
- 25,000.00
5,675.00 6,000.00 annually
250.00 500.00 monthly
3,136.00 250.00
ADJUSTMENTS:
Shipment from HO 5,000.00
Home Office 5,000.00
Expense 900.00
HO 900.00
Branch 100.00
Interest Income 100.00
Cash 6,000.00
Branch 6,000.00
BALANCE SHEET:
Cash 147,250.00
AR 167,250.00
Inventory 360,000.00
Branch -
FF 140,000.00
AD -
AP -
Home Office -
Share Capital -
RE -
TOTAL 814,500.00
GP rate 0.25
MU rate 0.33
6,500.00
Allowance
-
6,125.00 6,125.00
- 10,000.00
10,000.00 16,125.00 allowance charged by HO unadjusted balance
16,125.00 6,500.00 adjusted balance
- 9,625.00 realized MU
6,500.00
9,625.00
HO Branch Customer
realized
Consolidated
Credit
-
-
-
-
-
31,150.00
164,000.00
-
250,000.00
302,100.00
855,000.00
-
-
-
-
-
1,602,250.00
1,602,250.00
855,000.00
565,600.00
289,400.00
213,000.00
9,150.00
67,250.00 Income Summary 67,250.00
RE 67,250.00
-
-
-
-
-
31,150.00
164,000.00
-
250,000.00
369,350.00
814,500.00
usted balance
ted balance